Ether technical analysis for March 9-15: price likely to remain range-bound this week
Let’s study the chart patterns and try to predict the Ether price for this week
Sentiment drives short-term price action while the fundamentals determine the long-term trend of an asset class. Currently, with the coronavirus scare, traders are stuck in a state of panic.
Because of the sharp fall in the equity markets, many traders are nursing huge losses. To offset their losses, they are selling their positions in cryptocurrencies. Therefore, the whole crypto space is currently facing a wave of selling.
However, we suggest traders view this current fall as a buying opportunity instead of panicking and dumping their positions. Twenty five per cent of ETH supply is being held by the top 100 wallets, according to blockchain data analysis firm Santiment. This shows that the larger players are gradually building positions. Though this can be positive in the long-term, this is unlikely to affect the short-term price action. Let’s do Ether price analysis to determine the path of least resistance this week.
Ether price analysis this week
The Ether price analysis of the weekly and daily charts shows that bears are active at higher levels. However, can the bulls defend the lower support levels and start a recovery? Let’s study the chart patterns and do the Ether price prediction for the period between March 9 and 15.
Ether price chart: weekly
Ether witnessed a relief rally last week during which it bounced above the overhead resistance at $239.30. However, the bulls could not sustain the higher levels and the price has plunged to the $200-$193 support zone. This shows aggressive selling by the bears at higher levels.
Both the moving averages are located close to the current levels, which are likely to act as a strong support. If the ETH to USD pair rebounds off the moving averages, a move to $239.30 is possible. We expect the bears to defend this level aggressively once again. Therefore, the price might remain range-bound between $200-$239.30 for a few weeks.
A break above $239.30 will be the first indication that bulls are back in the game. On the other hand, a drop below the moving averages will be a huge negative and can sink the biggest altcoin to the next support at $157.36.
The Ether price analysis of the weekly chart does not show a clear trend. At best, it points to a few days of consolidation as the traders regroup and decide on the next directional move. Does the Ether price analysis of the daily chart provide any clues about the next possible move? Let’s find out.
ETH to USD chart: daily
Ether rallied above $239.30 on March 6. However, this proved to be a bull trap as the price turned down the next day and has continued its southward journey. The failure of the bulls to defend the support at $209.60 is a bearish sign.
If the bears can sink and sustain the price below the psychological level of $200, a fall to the 200-day SMA at $179 is possible. If this level also cracks, the decline can extend to $157.36. The 20-day EMA is sloping down and the RSI is in the negative territory, which suggests that bears have the upper hand.
Our bearish view will be invalidated if the ETH to USD pair reverses direction from the current levels and rises above the 20-day EMA. Such a move will indicate sharp buying at lower levels. How can the traders position themselves this week?
Ether price technical analysis for March 9 to 15: how to trade it
Our buy suggested in the previous analysis triggered on March 6 as the Ether closed (UTC time) above $239.30 but it proved to be a bear trap. The altcoin reversed direction from $252.81 and plunged below our suggested stop loss of $209 on March 8. The short-term trend shows that bears have the upper hand; therefore, we do not suggest any long positions at the current levels.
FURTHER READING: What is Ether? Your simple guide to the cryptocurrency
FURTHER READING: Crypto trading guide: buying coins for the first time